BLBG:Kenya Shilling Slides First Day in Six on Stronger Dollar Demand
Kenya’s shilling, the world’s best- performing currency against the dollar this month, weakened for the first time in six trading days as dollar demand increased.
The currency of East Africa’s biggest economy depreciated 0.7 percent to 90.25 per dollar at 12:05 p.m. in Nairobi.
Kenya’s monetary policy committee increased the key lending rate by 5.5 percentage points to a record 16.5 percent on Nov. 1 as it battles to contain inflation spurred by the worst regional drought in 60 years and higher fuel prices. Inflation accelerated to 18.9 percent in October from 17.3 percent in the previous month, the government said Oct. 28.
“The shilling has weakened due to renewed dollar demand on account of the recent rally of the local currency,” Bernard Matimu, chief dealer at Nairobi-based NIC Bank Ltd., said by phone. The shilling strengthened to 89.48 yesterday, the highest level since July, according to data compiled by Bloomberg.
Tanzania’s shilling weakened 0.2 percent to 1,703 per dollar, while Uganda’s currency depreciated for a second day, dropping 0.6 percent to 2,544.
Ghana’s cedi slumped 0.4 percent to 1.632 per dollar.
To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
